Getting biofuel to the pump is one of those things that the biofuel industry will have to do if its ever going to succeed. Over on the Huffington Post there's a report by Judy Duggan examining some of the issues that are preventing this.
One thing that she doesn't cover is gasoline distribution infrastructure... which is rather leaky and therefore prone to allow water to mix with the contents of tanks and pipes, that doesn't matter too much if you're selling something that doesn't mix with water as a fuel, but if its ethanol which does absorb water... But it will have to be sorted out if ethanol is mandated. Ther is also the cost to the garage owner of installing the pumps, tanks and so on.
hattip to automotive.com
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Getting biofuel to the pump
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This page contains a single entry from the blog posted on October 19, 2007 12:50 PM.
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Comments (1)
Simon
I read with interest the piece on Biofuel IPOs go bust. I am aware of the issues regarding feedstock cost and problems with logisitics infrastructure and how they affect supply and profit margins. I am however confused by the statements on oversupply and producer pricing power. The US targets for biofuels are significantly higher than curretn production so is the issue with a lack of mandates or obligations forcing blending and therefore the purchase of ethanol? Is production above the E5 level and therefore E85 capapcity is required?
Grateful for your insight
Adrian
Posted by Adrian Higson | October 25, 2007 11:46 AM
Posted on October 25, 2007 11:46